Document

"Great results in our Trade business led the way for this strong quarter. The team executed well and we had positive results from our base business as well as the new growth investments. The Renewables team also performed well in the quarter, despite declining ethanol crush margins and planned maintenance shutdowns. Within Plant Nutrient, ag businesses continued to see high margins, however, we took some write-downs in our lawn products inventory," said President and CEO Pat Bowe. "We also made progress against our growth strategy. We announced the acquisition of Bridge Agri - a pulses and pet food ingredients company headquartered in Lethbridge, Alberta. We also recently announced the acquisition of Mote Farm Service, a farm center located within our core geography. Bolt-on opportunities like these, that are well-aligned with our core grain and fertilizer verticals, remain very attractive growth opportunities for us."


$ in millions, except per share amounts
	Q3 2022		Q3 2021		Variance		YTD 2022		YTD 2021		Variance
Pretax Income from Continuing Operations	$	34.7	$	16.3	$	18.4	$	163.5	$	84.1	$	79.4
Pretax Income from Continuing Operations Attributable to the Company1	27.2		17.9		9.3		133.7		85.0		48.7
Adjusted Pretax Income (Loss) from Continuing Operations Attributable to the Company1	27.2		6.3		20.9		134.3		74.1		60.2
Trade1	40.7		27.6		13.1		68.7		56.0		12.7
Renewables1	8.4		(3.6)		12.0		59.8		22.8		37.0
Plant Nutrient	(11.6)		(5.8)		(5.8)		37.4		26.7		10.7
Other1	(10.2)		(11.8)		1.6		(31.6)		(31.4)		(0.2)

Net Income from Continuing Operations Attributable to the Company	17.4		13.9		3.5		104.0		66.9		37.1
Adjusted Net Income from Continuing Operations Attributable to the Company1	17.4		5.2		12.2		105.6		58.8		46.8
Diluted Earnings Per Share from Continuing Operations (EPS)	0.50		0.41		0.09		3.02		1.99		1.03
Adjusted Diluted Earnings Per Share from Continuing Operations1	0.50		0.15		0.35		3.07		1.75		1.32
EBITDA from Continuing Operations1	83.0		67.9		15.1		307.5		233.4		74.1
Adjusted EBITDA from Continuing Operations1	$	83.0	$	56.3	$	26.7	$	308.2	$	222.5	$	85.7
1 Non-GAAP financial measures; see appendix for explanations and reconciliations.

Nearly all of the improvement from the third quarter of 2021 resulted from better margins in our ethanol plants. This was particularly evident in our eastern plants where corn basis was lower in front of an expected good harvest. High co-product values continue to support our results. Increased corn basis in the western U.S. may negatively impact ethanol margins in that region, while our eastern corn belt production facilities are well-positioned for corn supply. Expected margin declines into the fourth quarter will negatively impact performance as compared to the fourth quarter of 2021 when industry margins were at record highs.

The Plant Nutrient segment posted a pretax loss of $11.6 million, compared to a loss in the prior year of $5.8 million in this seasonally low third quarter. As expected, margins remain strong in our core wholesale nutrients, farm centers, and specialty liquid products. In the granular and contract manufactured products, sales volume and margin declined on lower demand, production challenges, and inventory write-downs. Good fall weather and strong farm income are expected to support fall application rates in our core ag businesses.

This release contains forward-looking statements. These statements involve risks and uncertainties that could cause actual results to differ materially. Without limitation, these risks include economic, weather and regulatory conditions, competition, the ongoing economic impacts from the war in Ukraine, and the risk factors set forth from time to time in the company’s filings with the Securities and Exchange Commission. Although the company believes that the assumptions upon which the financial information and its forward-looking statements are based are reasonable, it can give no assurance that these assumptions will prove to be correct.

This release contains non-GAAP financial measures. The company believes that pretax income (loss) from continuing operations attributable to the company; adjusted pretax income (loss) from continuing operations attributable to the company; adjusted pretax income (loss) from continuing operations; adjusted net income from continuing operations attributable to the company; adjusted diluted earnings per share from continuing operations; earnings before interest, taxes, depreciation, and amortization (or EBITDA); EBITDA from continuing operations; adjusted EBITDA; adjusted EBITDA from continuing operations; and cash from operations before working capital changes provide additional information to investors and others about its operations, allowing an evaluation of underlying operating performance and liquidity and better period-to-period comparability. The above measures are not and should not be considered as alternatives to net income from continuing operations, pretax income from continuing operations or income (loss) before income taxes from continuing operations, diluted earnings (loss) per share attributable to The Andersons, Inc. common shareholders from continuing operations and cash provided by (used in) operating activities as determined by generally accepted accounting principles. Reconciliations of the GAAP to non-GAAP measures may be found within this press release and the financial tables provided herein.

The Andersons, Inc., celebrating 75 years of service and named to Forbes® lists of America's Best Employers for 2022 and Best Employers for Diversity 2022 as well as America's Most Trusted Companies 2022 by Newsweek®, is a diversified company rooted in agriculture that conducts business in the commodity merchandising, renewables, and plant nutrient sectors. Guided by its Statement of Principles, The Andersons is committed to providing extraordinary service to its customers, helping its employees improve, supporting its communities, and increasing the value of the company. For more information, please visit www.andersonsinc.com.


	Three months ended September 30,				Nine months ended September 30,
(in thousands, except per share data)	2022		2021		2022		2021
Sales and merchandising revenues	$	4,219,325	$	2,998,824	$	12,647,896	$	8,829,348
Cost of sales and merchandising revenues	4,055,560		2,876,989		12,133,755		8,430,665
Gross profit	163,765		121,835		514,141		398,683
Operating, administrative and general expenses	115,539		110,275		330,085		312,833

Interest expense, net	14,982		8,799		42,762		28,848
Other income, net:
Equity in earnings (losses) of affiliates, net	681		(250)		(5,597)		2,389
Other income, net	794		13,806		27,782		24,743
Income before income taxes from continuing operations	34,719		16,317		163,479		84,134
Income tax provision from continuing operations	9,839		4,027		29,695		18,065
Net income from continuing operations	24,880		12,290		133,784		66,069
Income from discontinued operations, net of income taxes	19,392		1,846		18,099		7,453
Net income	44,272		14,136		151,883		73,522
Net income (loss) attributable to noncontrolling interests	7,524		(1,602)		29,827		(822)
Net income attributable to The Andersons, Inc.	$	36,748	$	15,738	$	122,056	$	74,344

Earnings per share attributable to The Andersons, Inc. common shareholders:
Basic earnings:
Continuing operations	$	0.51	$	0.42	$	3.08	$	2.01
Discontinued operations	0.57		0.06		0.54		0.22
	$	1.08	$	0.48	$	3.62	$	2.23
Diluted earnings:
Continuing operations	$	0.50	$	0.41	$	3.02	$	1.99
Discontinued operations	0.56		0.05		0.53		0.22
	$	1.06	$	0.46	$	3.55	$	2.21


(in thousands)	September 30, 2022		December 31, 2021		September 30, 2021
Assets
Current assets:
Cash and cash equivalents	$	140,771	$	216,444	$	216,874
Accounts receivable, net	990,531		835,180		735,349
Inventories	1,556,426		1,814,538		1,017,804
Commodity derivative assets – current	502,097		410,813		409,647
Current assets held-for-sale	—		20,885		26,561
Other current assets	75,402		74,468		92,159
Total current assets	3,265,227		3,372,328		2,498,394
Other assets:
Goodwill	129,342		129,342		129,342
Other intangible assets, net	99,317		117,137		118,690
Right of use assets, net	59,146		52,146		50,270
Other assets held-for-sale	—		43,169		38,863
Other assets, net	99,650		69,068		74,923
Total other assets	387,455		410,862		412,088
Property, plant and equipment, net	765,939		786,029		797,660
Total assets	$	4,418,621	$	4,569,219	$	3,708,142

Liabilities and equity
Current liabilities:
Short-term debt	$	652,947	$	501,792	$	281,199
Trade and other payables	930,027		1,199,324		825,923
Customer prepayments and deferred revenue	258,828		358,119		147,225
Commodity derivative liabilities – current	137,168		128,911		78,702
Current maturities of long-term debt	112,029		32,256		106,255
Accrued taxes	23,439		37,668		97,215
Current liabilities held-for-sale	—		13,379		13,427
Accrued expenses and other current liabilities	206,069		192,480		173,215
Total current liabilities	2,320,507		2,463,929		1,723,161
Long-term lease liabilities	34,779		31,322		31,332
Long-term debt, less current maturities	497,988		600,487		542,821
Deferred income taxes	59,079		71,127		79,636
Other long-term liabilities held-for-sale	—		16,119		13,592
Other long-term liabilities	79,727		78,531		81,587
Total liabilities	2,992,080		3,261,515		2,472,129
Total equity	1,426,541		1,307,704		1,236,013
Total liabilities and equity	$	4,418,621	$	4,569,219	$	3,708,142


	Nine months ended September 30,
(in thousands)	2022		2021
Operating Activities
Net income from continuing operations	$	133,784	$	66,069
Income from discontinued operations, net of income taxes	18,099		7,453
Net income	151,883		73,522
Adjustments to reconcile net income to cash provided by (used in) operating activities:
Depreciation and amortization	101,266		142,137
Bad debt expense, net	5,028		(2,182)
Equity in (earnings) losses of affiliates, net of dividends	5,597		(2,389)
Gain on sale of business from continuing operations	—		(14,619)
(Gain) loss on sale of business from discontinued operations	(27,091)		1,491
Gain on sales of assets, net	(8,854)		(6,505)
Stock-based compensation expense	7,697		6,727
Deferred federal income tax	(20,819)		(93,725)


Other	10,055		10,404
Changes in operating assets and liabilities:
Accounts receivable	(140,866)		(89,902)
Inventories	236,854		266,865
Commodity derivatives	(104,901)		(158,741)
Other current and non-current assets	2,000		(3,357)
Payables and other current and non-current liabilities	(371,219)		(10,659)
Net cash (used in) provided by operating activities	(153,370)		119,067
Investing Activities
Purchases of property, plant and equipment and capitalized software	(72,247)		(52,730)
Proceeds from sale of assets	4,810		3,999
Purchases of investments	(2,105)		(5,993)
Proceeds from sale of business from continuing operations	5,171		18,130
Proceeds from sale of business from discontinued operations	56,302		543,102
Purchases of Rail assets	(27,464)		(6,039)
Proceeds from sale of Rail assets	36,706		18,705
Other	1,746		349
Net cash provided by investing activities	2,919		519,523
Financing Activities
Net receipts (payments) under short-term lines of credit	361,318		(324,279)
Proceeds from issuance of short-term debt	350,000		608,250
Payments of short-term debt	(550,000)		(408,250)
Proceeds from issuance of long-term debt	—		186,800
Payments of long-term debt	(22,585)		(485,527)
Contributions from noncontrolling interest owner	2,450		4,655
Distributions to noncontrolling interest owner	(34,930)		(25)
Payments of debt issuance costs	(7,802)		(2,059)
Dividends paid	(18,262)		(17,503)
Proceeds from exercises of stock options	5,024		—
Common stock repurchased	(6,769)		—
Other	(2,955)		(12,709)
Net cash provided by (used in) financing activities	75,489		(450,647)
Effect of exchange rates on cash and cash equivalents	(711)		(192)
Increase (decrease) in cash and cash equivalents	(75,673)		187,751
Cash and cash equivalents at beginning of period	216,444		29,123
Cash and cash equivalents at end of period	$	140,771	$	216,874


	Three months ended September 30,				Nine months ended September 30,
(in thousands, except per share data)	2022		2021		2022		2021
Net income from continuing operations	$	24,880	$	12,290	$	133,784	$	66,069
Net income (loss) attributable to noncontrolling interests	7,524		(1,602)		29,827		(822)
Net income from continuing operations attributable to The Andersons, Inc.	17,356		13,892		103,957		66,891
Adjustments:
Gain on sale of frac sand assets	—		—		(3,762)		—
Impairment on equity method and cost method investments	—		2,784		4,455		2,784
Gain on sale of a business	—		(14,619)		—		(14,619)

Transaction related stock compensation	—		243		—		1,000
Income tax impact of adjustments1	—		2,898		940		2,709
Total adjusting items, net of tax	—		(8,694)		1,633		(8,126)
Adjusted net income from continuing operations attributable to The Andersons, Inc.	$	17,356	$	5,198	$	105,590	$	58,765

Diluted earnings per share from continuing operations attributable to The Andersons, Inc. common shareholders	$	0.50	$	0.41	$	3.02	$	1.99

Impact on diluted earnings (loss) per share from continuing operations	$	—	$	(0.26)	$	0.05	$	(0.24)
Adjusted diluted earnings per share from continuing operations	$	0.50	$	0.15	$	3.07	$	1.75

Adjusted net income (loss) from continuing operations attributable to The Andersons, Inc. reflects reported net income (loss) from continuing operations available to The Andersons, Inc. common shareholders after the removal of specified items described above. Adjusted diluted earnings (loss) from continuing operations per share reflects the fully diluted EPS of The Andersons, Inc. after removal of the effect on EPS as reported of specified items described above. Management believes that Adjusted net income (loss) from continuing operations attributable to The Andersons, Inc. and Adjusted diluted earnings (loss) from continuing operations per share are useful measures of The Andersons, Inc. performance as they provide investors additional information about the operations of the company allowing better evaluation of underlying business performance and better comparability to previous periods. These non-GAAP financial measures are not intended to replace or be alternatives to Net income from continuing operations attributable to The Andersons, Inc. and Diluted earnings per share from continuing operations attributable to The Andersons, Inc. common shareholders as reported, the most directly comparable GAAP financial measures, or any other measures of operating results under GAAP. Earnings amounts described above have been divided by the company’s average number of diluted shares outstanding for each respective period in order to arrive at an adjusted diluted earnings (loss) from continuing operations per share amount for each specified item.


(in thousands)	Trade		Renewables		Plant Nutrient		Other		Total
Three months ended September 30, 2022
Sales and merchandising revenues	$	3,240,526	$	814,923	$	163,876	$	—	$	4,219,325
Gross profit	124,368		24,677		14,720		—		163,765
Operating, administrative and general expenses	73,347		7,053		25,427		9,712		115,539
Other income (loss), net	(262)		832		1,018		(794)		794
Income (loss) before income taxes from continuing operations	40,658		15,901		(11,609)		(10,231)		34,719
Income (loss) attributable to noncontrolling interests	—		7,524		—		—		7,524
Income (loss) before income taxes from continuing operations attributable to The Andersons, Inc. (a)	$	40,658	$	8,377	$	(11,609)	$	(10,231)	$	27,195



Three months ended September 30, 2021
Sales and merchandising revenues	$	2,242,131	$	614,637	$	142,056	$	—	$	2,998,824
Gross profit	98,196		5,751		17,888		—		121,835
Operating, administrative and general expenses	67,590		10,014		22,883		9,788		110,275
Other income (loss), net	16,886		683		309		(4,072)		13,806
Income (loss) before income taxes from continuing operations	41,999		(5,238)		(5,832)		(14,612)		16,317
Income (loss) attributable to noncontrolling interests	—		(1,602)		—		—		(1,602)
Income (loss) before income taxes from continuing operations attributable to The Andersons, Inc. (a)	$	41,999	$	(3,636)	$	(5,832)	$	(14,612)	$	17,919
Adjustments to income (loss) before income taxes from continuing operations (b)	(14,376)		—		—		2,784		(11,592)
Adjusted income (loss) before income taxes from continuing operations attributable to The Andersons, Inc. (a)	$	27,623	$	(3,636)	$	(5,832)	$	(11,828)	$	6,327
(a) Income (loss) from continuing operations before income taxes attributable to The Andersons, Inc. for each operating segment is defined as net sales and merchandising revenues plus identifiable other income less all identifiable operating expenses, including interest expense for carrying working capital and long-term assets and is reported net of the noncontrolling interest share of income. (b) Additional information on the individual adjustments that are included in the adjustments to income (loss) from continuing operations before income taxes can be found in the Reconciliation to EBITDA and Adjusted EBITDA table.



(in thousands)	Trade		Renewables		Plant Nutrient		Other		Total
Nine months ended September 30, 2022
Sales and merchandising revenues	$	9,422,974	$	2,380,721	$	844,201	$	—	$	12,647,896
Gross profit	293,981		99,756		120,404		—		514,141
Operating, administrative and general expenses	195,867		23,533		80,343		30,342		330,085
Other income (loss), net	7,745		19,750		2,688		(2,401)		27,782
Income (loss) before income taxes from continuing operations	67,993		89,639		37,445		(31,598)		163,479
Income (loss) attributable to noncontrolling interests	—		29,827		—		—		29,827
Income (loss) before income taxes from continuing operations attributable to The Andersons, Inc. (a)	$	67,993	$	59,812	$	37,445	$	(31,598)	$	133,652
Adjustments to income (loss) before income taxes from continuing operations (b)	693		—		—		—		693
Adjusted income (loss) before income taxes from continuing operations attributable to The Andersons, Inc. (a)	$	68,686	$	59,812	$	37,445	$	(31,598)	$	134,345

Nine months ended September 30, 2021
Sales and merchandising revenues	$	6,522,508	$	1,674,123	$	632,717	$	—	$	8,829,348
Gross profit	248,584		48,950		101,149		—		398,683
Operating, administrative and general expenses	186,035		23,247		72,850		30,701		312,833
Other income (loss), net	24,439		2,048		1,745		(3,489)		24,743
Income (loss) before income taxes from continuing operations	69,631		21,999		26,686		(34,182)		84,134
Income (loss) attributable to noncontrolling interests	—		(822)		—		—		(822)
Income (loss) before income taxes from continuing operations attributable to The Andersons, Inc. (a)	$	69,631	$	22,821	$	26,686	$	(34,182)	$	84,956
Adjustments to income (loss) before income taxes from continuing operations (b)	(13,619)		—		—		2,784		(10,835)
Adjusted income (loss) before income taxes from continuing operations attributable to The Andersons, Inc. (a)	$	56,012	$	22,821	$	26,686	$	(31,398)	$	74,121
(a) Income (loss) from continuing operations before income taxes attributable to The Andersons, Inc. for each operating segment is defined as net sales and merchandising revenues plus identifiable other income less all identifiable operating expenses, including interest expense for carrying working capital and long-term assets and is reported net of the noncontrolling interest share of income. (b) Additional information on the individual adjustments that are included in the adjustments to income (loss) from continuing operations before income taxes can be found in the Reconciliation to EBITDA and Adjusted EBITDA table.


	Continuing Operations										Discontinued Operations		Total Company
(in thousands)	Trade		Renewables		Plant Nutrient		Other		Total		Rail
Three months ended September 30, 2022
Net income (loss)	$	40,658	$	15,901	$	(11,609)	$	(20,070)	$	24,880	$	19,392	$	44,272
Interest expense (income)	10,782		2,555		1,920		(275)		14,982		—		14,982
Tax provision	—		—		—		9,839		9,839		5,826		15,665
Depreciation and amortization	9,011		15,501		6,626		2,184		33,322		—		33,322
EBITDA	$	60,451	$	33,957	$	(3,063)	$	(8,322)	$	83,023	$	25,218	$	108,241









Three months ended September 30, 2021
Net income (loss)	$	41,999	$	(5,238)	$	(5,832)	$	(18,639)	$	12,290	$	1,846	$	14,136
Interest expense (income)	5,243		1,658		1,146		752		8,799		2,139		10,938
Tax provision (benefit)	—		—		—		4,027		4,027		(2,777)		1,250
Depreciation and amortization	11,037		22,811		6,508		2,455		42,811		4,172		46,983
EBITDA	58,279		19,231		1,822		(11,405)		67,927		5,380		73,307
Adjusting items impacting EBITDA:
Gain on sale of a business	(14,619)		—		—		—		(14,619)		—		(14,619)
Transaction related stock compensation	243		—		—		—		243		—		243

Impairment on equity method and cost method investments	—		—		—		2,784		2,784		—		2,784

Total adjusting items	(14,376)		—		—		2,784		(11,592)		—		(11,592)
Adjusted EBITDA	$	43,903	$	19,231	$	1,822	$	(8,621)	$	56,335	$	5,380	$	61,715


	Continuing Operations										Discontinued Operations		Total Company
(in thousands)	Trade		Renewables		Plant Nutrient		Other		Total		Rail
Nine months ended September 30, 2022
Net income (loss)	$	67,993	$	89,639	$	37,445	$	(61,293)	$	133,784	$	18,099	$	151,883
Interest expense (income)	32,269		6,334		5,304		(1,145)		42,762		—		42,762
Tax provision	—		—		—		29,695		29,695		9,169		38,864
Depreciation and amortization	26,899		48,015		19,800		6,552		101,266		—		101,266
EBITDA	127,161		143,988		62,549		(26,191)		307,507		27,268		334,775
Adjusting items impacting EBITDA:


Gain on sale of frac sand assets	(3,762)		—		—		—		(3,762)		—		(3,762)
Impairment on equity method and cost method investments	4,455		—		—		—		4,455		—		4,455

Total adjusting items	693		—		—		—		693		—		693
Adjusted EBITDA	$	127,854	$	143,988	$	62,549	$	(26,191)	$	308,200	$	27,268	$	335,468

Nine months ended September 30, 2021
Net income (loss)	$	69,631	$	21,999	$	26,686	$	(52,247)	$	66,069	$	7,453	$	73,522
Interest expense (income)	19,746		5,752		3,358		(8)		28,848		8,714		37,562
Tax provision (benefit)	—		—		—		18,065		18,065		(428)		17,637
Depreciation and amortization	33,317		60,608		19,345		7,107		120,377		21,760		142,137
EBITDA	122,694		88,359		49,389		(27,083)		233,359		37,499		270,858
Adjusting items impacting EBITDA:
Gain on sale of a business	(14,619)		—		—		—		(14,619)		—		(14,619)
Transaction related stock compensation	1,000		—		—		—		1,000		—		1,000

Impairment on equity method and cost method investments	—		—		—		2,784		2,784		—		2,784

Total adjusting items	(13,619)		—		—		2,784		(10,835)		—		(10,835)
Adjusted EBITDA	$	109,075	$	88,359	$	49,389	$	(24,299)	$	222,524	$	37,499	$	260,023


	Three Months Ended,								Twelve months ended September 30, 2022
(in thousands)	December 31, 2021		March 31, 2022		June 30, 2022		September 30, 2022
Net income from continuing operations	$	65,473	$	6,504	$	102,400	$	24,880	$	199,257
Interest expense	8,444		10,859		16,921		14,982		51,206
Tax provision	11,163		4,103		15,753		9,839		40,858
Depreciation and amortization	36,797		34,377		33,567		33,322		138,063
EBITDA from continuing operations	121,877		55,843		168,641		83,023		429,384
Adjusting items impacting EBITDA from continuing operations:

Transaction related stock compensation	274		—		—		—		274


Asset impairment including equity method investments	8,321		—		4,455		—		12,776
Gain on sale of frac sand assets	—		—		(3,762)		—		(3,762)
Total adjusting items	8,595		—		693		—		9,288
Adjusted EBITDA from continuing operations	$	130,472	$	55,843	$	169,334	$	83,023	$	438,672

	Three Months Ended,								Twelve months ended September 30, 2021
	December 31, 2020		March 31, 2021		June 30, 2021		September 30, 2021
Net income from continuing operations	$	15,917	$	9,755	$	44,024	$	12,290	$	81,986
Interest expense	7,833		9,989		10,060		8,799		36,681
Tax provision (benefit)	7,718		4,361		9,677		4,027		25,783
Depreciation and amortization	38,568		38,617		38,949		42,811		158,945
EBITDA from continuing operations	70,036		62,722		102,710		67,927		303,395
Adjusting items impacting EBITDA from continuing operations:
Transaction related stock compensation	946		483		274		243		1,946
Gain on sale of a business	—		—		—		(14,619)		(14,619)

Loss from cost method investment	—		—		—		2,784		2,784

Severance costs	528		—		—		—		528
Total adjusting items	1,474		483		274		(11,592)		(9,361)
Adjusted EBITDA from continuing operations	$	71,510	$	63,205	$	102,984	$	56,335	$	294,034


	Three months ended September 30,				Nine months ended September 30,
(in thousands)	2022		2021		2022		2021
Cash provided by (used in) operating activities	$	568,429	$	364,561	$	(153,370)	$	119,067
Changes in operating assets and liabilities
Accounts receivable	148,330		(31,564)		(140,866)		(89,902)
Inventories	50,169		(123,641)		236,854		266,865
Commodity derivatives	84,189		91,950		(104,901)		(158,741)
Other current and non-current assets	(3,106)		(38,925)		2,000		(3,357)
Payables and other current and non-current liabilities	238,184		506,224		(371,219)		(10,659)
Total changes in operating assets and liabilities	517,766		404,044		(378,132)		4,206
Adjusting items impacting cash from operations before working capital changes:
Changes in CARES Act tax refund receivable1	—		—		—		27,697
Changes in deferred income taxes as a result of the Rail leasing sale2	—		95,097		—		95,097
Cash from operations before working capital changes	$	50,663	$	55,614	$	224,762	$	237,655

1 In 2020, the Company recorded a tax receivable of $37.6 million related to the CARES Act within working capital, with a corresponding impact to deferred taxes and net income. The purpose for presenting this significant unusual item as an adjustment to cash from operations before working capital changes was to show the tax refund in the year that the cash was received. As the working capital accounts are excluded in the cash from operations before working capital changes calculation, the impact of the CARES Act to deferred taxes and net income would have made it appear that cash of $37.6 million was received in 2020 when it was still to be collected. In view of that, we removed the $37.6 million CARES Act tax refund receivable from our 2020 non-GAAP total and included $27.7 million of cash tax refunds in 2021, the year the cash was received. The remaining $9.9 million of the CARES Act tax receivable remains outstanding as of September 30, 2022.

2 As a result of the Rail Leasing sale in the third quarter of the prior year, the Company reclassified a large portion of its deferred tax balance related to the accelerated depreciation of railcar assets to a tax payable. As the tax payable account resides within the "Payables and other current and non-current liabilities" it is removed in the Cash from operations before working capital calculation. Therefore, the change in the deferred balance related to the Rail Leasing sale must also be removed from the calculation to normalize the metric.

Cash from operations before working capital changes is defined as cash provided by (used in) operating activities before the impact of changes in working capital within the statement of cash flows. The Company calculates cash from operations by eliminating the effect of changes in accounts receivable, inventories, commodity derivatives, other assets, and payables and accrued expenses from the cash provided by (used in) operating activities. Management believes that cash from operations before working capital changes is a useful measure of the company’s performance as it provides investors additional information about the company’s operations allowing better evaluation of underlying business performance and improved comparability to prior periods. Cash from operations before working capital changes is a non-GAAP financial measure and is not intended to replace or be an alternative to cash provided by (used in) operating activities, the most directly comparable GAAP financial measure.